The theatre was to have closed last August because the landlord wanted to raise the rent, but after intense negotiations, it will remain open until 2009. I think the landlord has sacrificed a great deal because he would have made a lot more money turning the site into a shopping mall.

Now, the Chinese opera community faces a new problem. The government has identified Ko Shan Theatre in Hunghom for future performances, but all government venues require organisers to pay fees - which can amount to about $210,000 for a week's performances - four months in advance.

In North Point, the opera community is still operating under a system in which organisers only pay rent and artists' fees after collecting cash from the box office on the night of a performance. A government fund has now been set up to help them sort out this financial problem.

This example illustrates the importance of venues to arts groups. As the venues are owned by the government, some of the time slots are now used for other purposes. Primary and secondary schools, for example, sometimes stage graduation ceremonies at the Hong Kong Cultural Centre in Tsim Sha Tsui.

At present, arts groups can only get access to the venue for rehearsals for a limited time. Providing a permanent venue will, therefore, boost the quality of performances.

With a permanent venue at the Hong Kong Arts Centre, Jim Chim Sui-man's Theatre Ensemble, which has been very popular in the past couple of years, has gained its own identity and can now use the venue in a more creative way. Performers no longer need to start the show on stage, for example, but can use the aisles, or even a seat in the audience.

The Hong Kong Arts Development Council is charged with supporting these arts groups and helping them develop. But some groups have to be subsidised because it is impossible for them to survive on their own. For example, an orchestra is large and expensive but it cannot play the same show for more than a week because people will get bored. However, theatre groups are much more financially viable because they are usually smaller, and a show can run for more than a month.

Support from the private sector is very important to the development of the arts community. Private sponsorship of arts activities rose in recent years because developers bidding for the West Kowloon Cultural District project were keen to show their interest in the arts. With the project under review, however, this has since died down.

I believe arts theatres could do well in shopping malls if they were well managed. They could also draw crowds to restaurants and shops in the malls, in the same way that cinemas do.

The government should offer developers incentives to build arts venues at their new projects. More venues will definitely help create more arts groups, allowing the sector to grow and prosper.

Hopefully, more corporations will also support the arts as a way to enhance their image.

Ma Fung-kwok is chairman of the Arts Development Council.